News of an expanded licensing deal with Intuitive Surgical (NSDQ:ISRG) sent Hansen Medical’s (NSDQ:HNSN) shares soaring on Wall Street today.
Hansen announced that a patent licensing agreement with Intuitive, originally signed in 2005, was expanded to include new and forthcoming technologies, for which Intuitive will pay a total of $30 million in cash and share purchasing.
HNSN shares were up to $2.27 as of about 3:35 today, a 25.1% increase from the morning’s open at $2.05.
Intuitive agreed to pay $20 million up-front to expand the original licensing deal to include technologies developed after 2005 as well as those coming over the next 3 years, according to a press release. Intuitive also agreed to purchase nearly 5.3 million shares of Hansen’s common stock for $10 million, a 5% premium over the stock’s 10-day average.
The $10 million private placement closed Monday and the $20 million licensing fee will be paid Friday, according to a press release.
Robot-assisted surgery giant Intuitive Surgical got some Wall Street love of its own, with ISRG shares up 1.5% to $543.79 as of about 3:30 p.m.
